Prospects Good for Rising Sale of Frozens, Seen as Comfort Food in Uncertain Times
Reported by John M. Saulnier

The current poor economic climate is actually stimulating demand, as consumers regard frozen food products as terrific value for money, says UK coldstore executive Garry Tilburn.?

“We are entering a very uncertain future. Many individuals have no experience in the current turbulent conditions, and will be reluctant to believe anybody,” said Garry Tilburn. “Frozen food, if positioned correctly, can be part of the road to recovery.”

That was the bottom line of a presentation on “Trends in the European Cold Chain Industry” delivered by the managing director of Reed Boardall Cold Storage, North Yorkshire, UK. He was addressing the Global Cold Chain Alliance (GCCA) Assembly of Committees in Washington, DC.

“In general, frozen food consumption is not declining,” stated Tilburn. He added that more home cooking and less eating out, with the exception of dining at lower-end fast food restaurants, is resulting in increased demand for frozen food.

Tilburn’s pan-European outlook for the cold storage business during the remainder of 2009 and into next year ranged from pessimism regarding prospects in Spain, to cautious optimism for operators elsewhere.
“Occupancy rates are still fairly high, or at least stable, except in Spain,” he commented. “In general there is lower throughput, thus less revenue. Port coldstores are benefiting from lower costs of sea transport and less terminal congestion. Weaker coldstores are expected to go out of business.”

Even though the sun is not shining on Spain’s economy at the moment, there are several public refrigerated warehousing construction projects under way which will add 83,000 pallet positions, noted Tilburn. In Italy, Gruppo Marconi is adding 500,000 cubic meters of space. BLG Coldstores is tacking on 4,300 pallet places in Germany, and three new coldstores have come on line in Poland.

A significant amount of private space has been added too, said Tilburn, including several installations in Spain amounting to 99,000 pallets. Partner Logistics has been especially active with projects in Russia bringing 60,000 pallet positions on line in St. Petersburg and 40,000 in Moscow. Additionally, it has two projects in the UK adding 150,000 pallets.

As for movement on the merger-acquisition front, Tilburn noted two significant events that have occurred this year: Kloosterboer’s takeover of Daalimpex facilities in Holland from Eimskip, which increased its capacity by approximately 1 million cubic meters; and the acquisition of Eimskip’s Innovate facilities in the UK by the Yearsley Group.

Mark Escolme Now Managing Findus Group Findus Group Managing Director Mark Escolme is new on the job. Mark Escolme has taken the reins as managing director of the Findus Group, responsible for UK frozen businesses Young’s Seafood and Findus, just months after Chris Britton was appointed ceo. The move follows the gradual retirement of the founding trio of the modern face of the seafood company: Wynne Griffiths, Jim Cane and Mike Parker. Escolme is a senior international consumer goods industry manager with 20 years experience working for major brands and companies in the UK and overseas. Prior to joining Findus he was group managing director of SC Johnson responsible for business in the UK, Ireland, Australia and New Zealand. During his career he has also led innovation teams in the US and been involved in setting up businesses in Russia, China, India and Africa. The Findus Group is one of Europe’s largest frozen food and seafood suppliers, with a number of leading brands, 6,000 employees and turnover of more than £1.1 billion. It is the parent firm of Young’s, Findus and The Seafood Company, which produces frozen and chilled fish for UK supermarkets. All are based in Ross House at Grimsby docks.